For anyone who wants to know where underfunding and under-staffing of the Small Business Administration leads, check out this report from the U.S. Government Accountability Office.
The GAO writes of rampant abuse of the SBA’s HUB(Historically Underutilized Business)Zone program, which awarded $8 billion in federal contracts to some 4,200 certified small businesses in 2007. Specifically, the report details misrepresentation by 19 companies that falsely claimed HUB status to qualify for nearly $30 million in prime contracts and $187 million in federal contracts between 2006 and 2007.